As Brendan Brown and Robert Pringle take it upon themselves to provide an accounting of the existing monetary framework before introducing reader their prescriptions, _A Guide Good Money: Beyond Illusions Asset Inflation_ is excellent primer for those who wish simply understand opacities modern money. On one level, therefore, succeeds as both easily digestible guide confused a hopeful theoretic...

1. Money has three functions: it is a store of value, a unit of account, and a medium of exchange. As a store of value, money provides a way to transfer purchasing power from the present to the future. As a unit of account, money provides the terms in which prices are quoted and debts are recorded. As a medium of exchange, money is what we use to buy goods and services. 2. Fiat money is establi...

This paper investigates the relationship between memory and the essentiality of fiat money. We consider a random matching economy with a large finite population in which commitment is not possible and memory is limited in the sense that only a fraction m ∈ (0, 1) of the population has publicly observable histories. We show that no matter how limited memory is, there exists a social norm that ac...

The spread of the coronavirus has devalued stock indices, lowered commodity prices such as oil, and chaos in financial markets around world. Fiat currencies have plummeted central banks injected too much money into affected economies, an unprecedented recession hit world that institutions are unable to cope with. Bitcoin is a virtual currency whose production result time-consuming computational...

T he theoretical framework within which optimal monetary policy was studied before the arrival of the New Keynesian Phillips curve (NKPC), but after economists had become comfortable using dynamic, optimizing, general equilibrium models and a welfare-maximizing criterion for policy analysis, was one in which the central source of nominal nonneutrality was a demand for money. At center stage in ...

Depending on the chosen perspective, cryptocurrencies either constitute a unique opportunity to end national patronizing built debt-based fiat money (currency) or menace well-established financial order that ensures economic stability. A central issue in heated debate surrounding is whether they have any intrinsic value at all. In this conceptual position paper, we briefly summarize existing st...

The workings of monetary systems have been controversially discussed. Mainstream economists assert that money creation is a ‘top down’ process governed by centralized policy decisions (central banks => customers), while heterodox emphasize ‘bottom up’ dynamics in the opposite direction, driven customers’ demand for credit. article draws on sociological insights into complementarity formal an...

We define continuous-time dynamics for exchange economies with fiat money. Traders have locally rational expectations, face a cash-in-advance constraint, and continuously adjust their short-run dominant strategy in a monetary strategic market game involving a double-auction with limit-price orders. Money has a positive value except on optimal rest-points where it becomes a “veil” and trade vani...

This article provides an analysis of the economic cost incurred by world through use fiat international reserve currency since end 1971 gold standard system. The uses Quantity Theory Money to provide empirical manifestation how yields income its issuing country provision inflation buffer, which is equivalent what frames as imperial rent currency. then a method estimate cumulative quantity this ...